December is a good month for milk prices. Following Arla and FrieslandCampina, DOC Kaas is also coming up with a significant increase.
The processor from Hoogenveen, which is part of the German dairy cooperative DMK, increases the milk price by €2,14. The basic milk price therefore amounts to €41,39 per 100 kilos. Dairy farmers who practice grazing are paid €43,14.
Including the VLOG premium, the payout price increases to €44,14. The prices are calculated at the standard Dutch contents for an annual supply of 1 million kilos.
Rally on dairy market
Milk prices are benefiting from the recent price rally on the dairy market, with cheese and milk powder prices soaring. In the meantime, the top seems to have been reached. The fact that milk prices are still rising is due to the fact that milk prices usually respond to dairy market developments with some delay.
On average shortly above cost price
When we zoom out on the developments in 2021, we observe an average basic milk price of €35,90 per 100 kilos at DOC Cheese. For many companies this is at or slightly above the calculated cost price. Bearing in mind the sharply increased concentrate prices, dairy farmers also need the current milk prices to correct the balance.
Click here to view the milk price comparator.